Opec output hits six-month high in May

VIENNA, June 13, 2017

With US oil and gas companies already stepping up activities in 2017, crude output climbed in May - the same month Opec met to extend its production cuts - to a six-month high, since November 2016, according to the organisation's latest monthly market report.

The oil producing group's May report mentioned that the global oil supply increased by 0.13 million barrels per day, mb/d, in May to average 95.74 mb/d.

In the meantime, the Opec Secretariat released the 52nd edition of the Annual Statistical Bulletin, ASB on June 13.

The ASB provides a wide range of data on the oil and gas industry worldwide, serving as an important source of reliable information for research analysts and academics, as well as policymakers and many other industry stakeholders, it stated.

As per the ASB, in 2016, world crude oil production inched up by 0.35 mb/d, or 0.5 percent, as compared to 2015, to reach 75.48 mb/d, marking the seventh consecutive year of growth.

The majority of non-Opec countries registered substantial declines in their 2016 average crude production, as compared to 2015. In 2016, the top three crude oil producing countries were Saudi Arabia (10.46 mb/d), Russia (10.29 mb/d) and the United States (8.88 mb/d), said the report.

"World oil demand averaged 95.12 mb/d in 2016, up by 1.5 per cent year-on-year (y-o-y), with the largest increases in the Asia Pacific region, particularly China and India, as well as Western Europe, North America and Africa. 2016 oil demand in the Middle East remained flat y-o-y, while oil demand declined in Latin America for the second year in a row," according to the ASB, which added in this respect that the total demand from the Organisation for Economic Co-operation and Development (OECD), grew solidly for the second consecutive year in 2016, while oil demand in OPEC Member Countries declined for the first time since 1999, dropping by 0.20 mb/d or 2.2 per cent.

Total exports of crude oil from Opec member countries stood at 25.01 mb/d in 2016, up from 23.49 mb/d in 2015, representing a 6.5 percent growth rate y-o-y, the bulletin said remarking that the bulk of crude oil from OPEC members was exported to the Asia Pacific region at a level of 15.72 mb/d or 62.9 per cent.

Total world proven crude oil reserves stood at 1,492 billion barrels, bn b, at the end of 2016, increasing slightly by 0.3 percent from the previous year’s level of 1,488 bn b, indicated the report , noting that the largest additions came from Iraq, Venezuela and Norway.

Total OPEC Members’ proven crude oil reserves increased by 0.5 per cent to 1,217 bn b at the end of 2016, with a share of 81.5 per cent of total world crude oil reserves.

With regards to the prices, the ASB indicated that the OPEC Reference Basket averaged $40.76/b in 2016, down from $49.49/b in 2015 and reaching the lowest yearly average since 2004. The yearly decline valued at $8.73/b, or 17.6 per cent, as compared to 2015. The 2016 volatility stood at $7.28/b, or 17.9 per cent, relative to the yearly average.